ISLAMABAD — Pakistan’s economy is showing signs of stabilization, with key reforms gaining momentum across major sectors, Finance Minister Muhammad Aurangzeb announced Monday. Speaking at a press conference alongside top officials, he said global rating agencies have acknowledged the country’s improving economic outlook, while the IMF’s staff-level agreement further validates the progress.
Aurangzeb emphasized that macroeconomic stability has been achieved, and the government is now focused on sustainable growth through structural reforms in taxation, energy, pensions, and institutional right-sizing. He noted that recent policy rate cuts have positively impacted the economy.
Tax Reforms & Revenue Growth
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial reported a 1.5% increase in the tax-to-GDP ratio, with tax filers rising by 18% to 5.9 million. He clarified that the current reforms aim to broaden the tax base without introducing new taxes. The FBR now collects 15% of revenue from the federal level and 3% from provinces, with a target of reaching 18% of GDP.
Energy Sector Overhaul
Energy Minister Awais Leghari revealed a Rs 1,200 billion debt restructuring deal, which has already reduced circular debt by Rs 700 billion. He announced that the government will stop purchasing electricity, and tariffs have been reduced by 10.5% over the past 18 months. Plans are underway to introduce prepaid meters and automated systems to improve efficiency and cut losses.
Privatization & Institutional Reform
Advisor on Privatization Muhammad Ali confirmed the sale of First Women Bank for Rs 5 billion, defending the move amid criticism. He said PIA privatization is progressing, with Fauji Foundation, Airblue, Lucky Cement, and Arif Habib Group among the bidders. Privatization of DISCOs will begin with IESCO, LESCO, and FESCO.
Right-Sizing the Government
Prime Minister’s Coordinator Salman Ahmed stated that 20 ministries have been restructured, eliminating 54,000 vacant posts. He also announced plans to shut down PASSCO, a loss-making state entity, to reduce the fiscal burden. All right-sizing decisions, he added, are subject to cabinet approval and inter-ministerial consultation.
The press conference underscored the government’s commitment to fiscal discipline, transparency, and long-term economic resilience, signaling a shift from crisis management to strategic reform.
